Corporate Compliance, (General Discussion)
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CORPORATE COMPLIANCE
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Transcript of Corporate Compliance, (General Discussion)
CORPORATE COMPLIANCE
Corporate Compliance
Definition: A corporate compliance program is a system which is designed to detect and prevent violations of law by the agents, employees, officers and directors of a business.
Clearly, a code-of-conduct is an important component of a compliance program and ethics remains the heart and soul of all corporate compliance programs.
Understanding the Company
Identification of Applicable Laws
Evaluation of Laws
Assessment of Laws
Setting of Compliance Organisation Structure
IMPLEMENTATION OF COMPLIANCE SERVICES WITHCORPORATE COMPLIANCE MANAGEMENT
THE FIVE STEP PROCESS
STEP I : UNDERSTANDING THE COMPANY
Company’s History & Background
Capital Structure & Evolution
Promoters & Group Companies
Management & Administration buildup
Financial Soundness & Debt Structure
Risk Management & Protection
Licenses & Approvals
STEP II : IDENTIFICATION PROCESS
General Application of
Laws
Sectoral Application of
Laws
Industry / Segment
Application of Laws
Geographical Application of
Laws
On the basis of Number of Employees
Transaction Application of
Laws
Corporate Laws
Taxation Laws
Securities Laws
GENERAL APPLICATION OF LAWS
INDUSTRY/ SEGMENT WISE APPLICATION OF LAWS
Media And Entertainment
Infrastructure, Power And Telecom
IT Solutions
IT Enabled Services And BPO
Textiles
Tourism And Hotel Capital Market And Its Intermediaries
Engineering and Construction FMCG
Agriculture AndFood Processing
Capital Goods
Drugs, Pharma And Healthcare
Banking And NBFC
Financial Services
STEP III – EVALUATION OF COMPLIANCE TIMINGS
Compliance Timings
One Time Fixed/Regular Event based
Identify the gap
between
the present compliance system
and
the results of Evaluation Process
STEP IV - ASSESSMENT
Establishing Controls & Standard Delegation of Responsibility Analysis & Assessment Compliance Reporting
STEP V : CREATION OF COMPLIANCE STRUCTURE
Value Creation of Enterprise through Corporate Compliance
Enhanced Trust and Confidence of all
Stakeholders
Employees
Investors Customers
Suppliers
Government and Regulators
Society
VALUE CREATION THROUGH CORPORATE COMPLIANCE
Growth
Growing Revenues
Growing Profits
Growing Market Value
VALUE CREATION THROUGH CORPORATE COMPLIANCE
CORPORATE VALUE WITHOUT CORPORATE COMPLIANCE
• Loss of Investors Confidence
• Difficulty in further raising of capital
• Investor Complaints
• Loss of reputation in National & International Markets
DISCLOSURE & TRANSPARENCY
Compliance Compliance
SECTORAL APPLICATION OF LAWS
Sector
Public Private
Service
Manufacturing
Trading
Simplification: The Next Move
Developing Compliance Management Tools
USE OF TECHNOLOGY
Compliance Organisation
StructureAlerts &
Notifications
Risk Mitigations
Performance Reporting
RESEARCH & UPDATIONS
Regular visits to Authority’s website
Newspapers & Business News Channels
Subscriptions of Law websites
Newsletters & Magazines
Discussions e-Forms
80%
20%
Filing forms & Applications
Registers & Returns
Checklists
Good Compliance
Risk Mitigation
Corporate Governance
Focus on Procedural Complianc
es
PRESENT FACE
Traditional Role
Strategic Role
ADVANTAGES OF COMPLIANCE MANAGEMENT
Effective control tool for Top Level Management
Create awareness of status of Compliance based Risk
Centralized Control of Compliance Management
Strengthens areas of weakness
Central repository of documents
Good Corporate Governance
Reduces Risk
Higher Profits
Higher Valuation
RESULT OF GOOD CORPORATE COMPLIANCE
MAKING YOUR COMPANY DIFFERENT & LEADING TOWARDS EXCELLENCE
HAPPY COMPANY
HAPPY MANAGEMENT
HAPPY INVESTORS
HAPPYSUPPLIERS
HAPPY REGULATORS
HAPPYCUSTOMERS
The Conclusion is ……….
Make Your Company GOOD GOVERNED COMPANY
Systematic
Compliant ValuedBE…..
Thank You
